Dominion (D) said the company and the Office of the Attorney General of Virginia, Division of Consumer Counsel, Wal-Mart Stores East and Sam's East, Kroger, Chaparral (Virginia) Inc., MeadWestvaco Corp., International Paper Company, and the Apartment & Office Building Association of Metropolitan Washington, have filed a comprehensive Stipulation and proposed Recommendation for approval by the Virginia State Corporation Commission. The agreement, if approved, would resolve the pending proceeding to set base rates for Virginia jurisdictional customers of Dominion Virginia Power, as well as the Virginia fuel case proceeding, and the authorized return on equity for the rate adjustment clauses for the Bear Garden Power Station and the Virginia City Hybrid Energy Center.
As per the agreement, Dominion Virginia Power's base rates would not change from the level that existed prior to the filing of the base case. The increase in base rates that was implemented on an interim basis September 1 would be returned to customers. The company's authorized return on equity applicable to its base rates would be set at 11.9%, with an earnings collar and sharing mechanism established by Virginia law. Under the terms of the agreement, the company would return $268 million of 2008 earnings to customers through the end of 2010.
Further, the company affirmed its fiscal year 2009 operating earnings guidance in the range of $3.20 to $3.30 per share. Street analysts expect earnings of $3.24 per share.
The company also affirmed its fiscal year 2010 operating earnings outlook in the range of $3.20 to $3.40 per share. Street analysts expect earnings of $3.24 per share.
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